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China is preparing to cut electric vehicle incentives this year

 

China is planning to minimize the subsidies on new electric vehicles by 20% this year. The Ministry of Finance of China revealed this strategy to prepare electric vehicle developers and consumers for such measures. To be specific, the subsidies imposed on new vehicles in the transportation industry like new buses, passenger vehicles, taxis, delivery vehicles, trucks, crossovers, public utility vehicles, and government-owned cars will reduce by 10% to spearhead the transition to electric vehicles. Moreover, the Ministry explained that the car developers would have to adhere to the existing technical prospects like battery energy density, mileage range, and energy uptake through this year. For example, the lowest standard battery-electric vehicle will be expected to have a mileage range of 300 kilometers to enjoy the $2500 to $3000 subsidy. On the other hand, a plug-in hybrid electric vehicle with a mileage range of 50 kilometers will receive a $1250 subsidy. 

Moreover, the government will harden its stance on the adherence to safety measures for the new energy vehicles. For instance, the subsidies will be lifted or rendered null and void if the manufacturer is found culpable in leading to accidents due to insufficient safety measures or not adjusting their product after finding them to be problematic. Additionally, the government stated that stringent standards would be implemented to suppress investment and unauthenticated development of new energy vehicles to minimize the pressure on the existing roads and other resources. Other strategies include overseeing the quantity manufactured, establishing entry regulations for vehicle models and car manufacturers entering the market. Furthermore, the manufacturers who are expanding their operations, merging with other companies, and restructuring their operations will inform the appropriate agencies to facilitate city planning. 

China has witnessed the production and purchase of new energy vehicles plummeting over the last two years after Beijing sequestering the subsidies and a sluggish economic growth rate. The coronavirus pandemic, which began last year, also impeded the growth of the NEV sector. The government revealed that it would extend the subsidies on the new energy vehicles for the next two years to accelerate the recovery of the NEV adoption process after the pandemic weighing in on this sector. Initially, the subsidy reduction plan was to kick off last year but is switching to this year and will be reducing by the addition of 10% to the existing rate through time. Last year, the government intervened to accelerate the uptake of the vehicles. These efforts are visible in the 3.9% rise in sales of these NEVs per the report submitted by China’s automotive manufacturer’s association. 

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TVA is paving the way for additional EV’s

If you begin to see more charging points in Tennessee, don’t be shocked. As per the Tennessee Valley Authority, only about 13,000 electric vehicles (EVs) travel the Tennessee Valley Route. Last month, the public power corporation made a crucial change in the hope of growing the amount, a move that won an environmental group’s TVA applause. The TVA board passed a new commercial rate system in mid-November only for Electric Vehicle charging stations. The vote was meant to help the region-wide extension of EV charging networks, eliminating a significant hurdle for customers to purchase more EVs, perhaps.

The barrier is generally referred to as “range anxiety.” It is the fear that the battery of an EV will drain out before the user makes his destination or identifies another charging point. As per ChargeHub, almost 80 Tennessee cities currently have charging points. Memphis boasts of 113 charging stations as well as 52 of them (46%) provide free charging. There are 325 stations in Nashville, 107 in Knoxville, and 107 in Chattanooga. According to a survey by the ICCT (International Council on Clean Transportation), nearly 320,000 new electric vehicles were sold in the United States in 2019, making the region the third largest Electric car market globally. 

Half of those cars were registered in California, and in San Jose, California, 20% of those were sold. Of the number, Memphis revenue accounted for about 0.5%. According to the study, charging technology remains a challenge but is improving. The ICCT report reads: “With the estimated compound annual growth at 30% across the 50 metropolitan regions, the deployment of charging infrastructure is in accordance to meet the projected charging gap by 2025.” There is probably a minimum of 450 public chargers for every million residents in places with the largest electric car shares. Half of the American population resides where charging is not more than 50% of the same benchmark.”

On TVA’s website, Drew Frye, the program manager for the Electric Vehicles EVolution campaign of TVA, stated that other challenges to Electric vehicles adoption in the valley had included lack of funding from both the state and local governments as well as local utilities, electric car affordability, and overall market perception of EVs. “In order to reduce or eliminate each of these obstacles, TVA is focusing on what we action we should take,” Frye stated. “We will start by developing regulations that focus on the Electric car rate as a distinct and separate class and create the latest, the monetary, stable rate for all those constructing charging points, something that we can do rapidly as a regulator in our position.”

Carving out the commercial rate for Electric Vehicles charging stations would encourage the 153 local power utilities of TVA to conveniently offer quick charging as well as the capacity of private firms to resell power to and run the fast chargers that they own. To put it plainly, this step opens the door to the construction of quicker charging stations around the TVA’s service area.